Key Takeaways
- Charles Hoskinson, the creator of Cardano, warns that Ethereum could become obsolete within the next 10–15 years.
- He likens Ethereum’s situation to past tech giants like BlackBerry and MySpace.
- Ethereum’s technical shortcomings and dependence on Layer 2 solutions could erode its dominance.
- Institutional investors are shifting from Ethereum to alternatives like Solana.
Why Hoskinson Believes Ethereum is in Trouble
Charles Hoskinson, co-founder of Ethereum and founder of Cardano, made a bold statement during a recent Q&A: he believes Ethereum may become irrelevant in the next 10 to 15 years. Drawing comparisons to tech legends that lost their edge—such as MySpace and BlackBerry—Hoskinson claims Ethereum’s internal issues and structural flaws could seal its fate.
“Ethereum won’t survive another 10–15 years,” he stated plainly. “Layer 2 solutions are draining its value, and users will eventually gravitate toward superior systems like Bitcoin DeFi.”
Hoskinson Points to Three Major Flaws in Ethereum
Hoskinson identifies three critical problems he believes threaten Ethereum’s longevity:
- Outdated Technical Architecture: Ethereum’s core infrastructure—including its accounting system, virtual machine, and consensus mechanism—is, in his words, “poorly built” for long-term use.
- Layer 2 Fragmentation: Instead of enhancing Ethereum, Layer 2 platforms like Optimism and Arbitrum are splintering the community and making unity more difficult.
- Lack of Leadership: Without a clear on-chain governance structure, Ethereum relies too heavily on figures like Vitalik Buterin to guide the network.
“It’s just like BlackBerry or MySpace—big followings, but they couldn’t evolve,” Hoskinson remarked. “Now Solana and others are taking over.”
Ethereum’s Current Issues: Fees, Activity, and Token Supply
Hoskinson’s warning comes as Ethereum grapples with several challenges:
- Declining Network Activity: Both transaction fees and daily usage are at multi-year lows.
- ETH No Longer Deflationary: The burning mechanism meant to reduce ETH supply has lost its effect, weakening ETH’s appeal.
- Institutional Exit: Big investors like Galaxy Digital and Paradigm are reportedly offloading ETH in favor of assets like Solana ($SOL).
“Galaxy Digital deposited 65,600 ETH (105M) to Binance and withdrew 98M in SOL last week.”
— Lookonchain, April 2025
Are Layer 2s Hurting More Than Helping?
Ethereum’s strategy of scaling through Layer 2 networks (L2s) might be backfiring. Although L2s were intended to reduce fees and congestion, they’re instead drawing users and developers away from the main Ethereum chain. This fragmentation dilutes Ethereum’s ecosystem and reduces the amount of ETH being burned—an important mechanism for maintaining scarcity.
Is There Still a Future for Ethereum?
Not all hope is lost. Some investors are quietly accumulating ETH at lower prices, anticipating a rebound. Still, even the hopeful acknowledge the road ahead won’t be easy:
- Standard Chartered has cut its 2025 ETH price forecast.
- Rivals like Solana and Bitcoin DeFi continue gaining ground due to faster, cheaper transactions.
Hoskinson, while recognizing Ethereum’s achievements, warns that success may have led to complacency:
“Network effects have kept it alive, but innovation always wins. Better technology will take its place.”
The Bottom Line
Ethereum pioneered the smart contract revolution, but its position is no longer guaranteed. Just as BlackBerry couldn’t survive the rise of the iPhone, Ethereum could lose its lead if it fails to innovate. Whether Hoskinson’s prediction comes true or not, one thing remains certain: the crypto space is always evolving.
Have your say—share this article and tag your Ethereum-supporting friends!
Follow us on Google News for the latest crypto updates!
Note: All prices and information are accurate as of April 2025.
Read more: TheVapeLabs: Earn Crypto While Tracking Your Vape Habits!
